In the heart of America’s Corn Belt, the potential for year-round sales of E15 gasoline is stirring optimism among corn growers. This ethanol blend, containing up to 15 percent corn-based ethanol, has been restricted during summer months in many states, but changes may be on the horizon.
Mark Recker, a farmer from northeast Iowa who cultivates corn and soybeans, expresses hope as Congress considers legislation that could lift these restrictions. “This looks like something that could really happen,” said Recker, a longtime advocate for E15.
Currently, the House has passed a version of the bill, and it is under review in the Senate. Approval of year-round E15 sales is expected to increase corn demand, offering a financial boost to farmers who have faced low corn prices in recent years.
The Economic Implications
While expanded E15 sales promise benefits for corn growers, the situation is more complex for soybean farmers. Provisions in the bill could impact the soybean market, potentially reducing overall profit gains. Seth Meyer, director of the Food and Agriculture Policy Research Institute at the University of Missouri, highlights the potential for increased ethanol production at the cost of soybean-based biodiesel. The bill includes exemptions allowing smaller refineries to blend less biofuel, which Meyer warns could further disadvantage biodiesel.
“The bean folks are saying, ‘Wait a minute, corn, you get your E15, but if you are trading off small refinery exemptions, that falls on us,'” Meyer said.
Gretchen Kuck from the National Corn Growers Association acknowledges these challenges, noting that corn price gains may be tempered by the exemptions. Nonetheless, she anticipates an average gain of $5 per acre for farms balancing corn and soybean cultivation over the next decade.
Potential Benefits for Consumers
Despite the complexities, the bill could also have positive outcomes for consumers. According to Kuck, offering a savings of 25 cents per gallon at the pump is a significant advantage. Presently, only eight states have the ability to sell E15 year-round due to a permanent waiver granted in 2022.
In other states, E15 is available during summer months when temporary waivers are issued, such as one granted earlier this year in response to geopolitical tensions.
This story was produced in partnership with Harvest Public Media, a collaboration of public media newsrooms in the Midwest and Great Plains. It reports on food systems, agriculture and rural issues.
